Title deed assured even if developer fails to pay fee

The Land Department of Dubai will issue a title deed to the unit owner even if a developer fails to fulfill his obligation of paying one per cent of the sales registration fee, a senior department official told Emirates 24|7.

“Sales and purchase agreements (SPA) define the terms of payment of fees for sales registration. In cases, where the developer refuses to pay one per cent of his share for sales registration, the unit owner can pay the entire two per cent and register the property and get a title,” said Mohammed Sultan Thani, Assistant Director General of Land Department.

“Besides, we will be issuing a certificate from our side mentioning that the unit owner has paid the entire two per cent. He/she can then claim the one per cent from the developer.”

In August, Emirates 24|7 had published the plight of owners of Goldcrest Views 1 in Jumeirah Lakes Towers who have been waiting for more than two years to receive their title deeds.

Asked if it was mandatory to have title deeds to sell properties, Thani said selling units without title deed was illegal and title deed was mandatory for every seller of a completed property.

The Land Department, on its website, clearly mentions that registering the property purchase with the department and being issued with a title deed is the only mechanism in place to certify ownership of a particular property and to guarantee rights as an owner of the property. A title deed takes no longer than three days to be issued if all the necessary documents are submitted. The issuance fee is Dh250.

However, property sales of completed units sans title deed have been taking place through proxy whereby developers issue a separate SPA to the new buyer after taking some fee from the original buyer.

“Now no one can cheat us now since all the units are registered with the department. However, if a new buyer comes, then he will be asked to pay four per cent sales registration fee (two per cent for the original buyer and two per cent for his transaction) to register the property. Though we will register the unit, the developer will be warned not to do it again,” Thani added.

Follow Emirates 24|7 on Google News.